Morning journal and courier., 1887-03-15
OPPOSITION TO THE DEnBY,s SALE

N. w. Merwin Refuses to Answer
 Questions Put by Attorney Tyler
 His Testimony Ruled Out The
 Reasons For Not Answering-The
 Hearings Not Through Yet.
 The parties opposed to the sale of the "Little Derby" were again before the com mittee on finance last evening and expressed the reasons why in their mind the Derby. road should not pass out of the hands of the city and into the hands of the Housatonic
 Valley railroad company. The hearing was announced to begin at 7:30, but it was near ly o'clock before the members of the com
 mittee had taken their seats and the hearing
 was begun The committee room was
 crowded as it has been since the first hearing
 on the matter. Councilmen Moran and
 Gessner found it necessary to be excused by
 their board which meets upstairs before they
 could join their brother members of the
 finance committee.
 Mir. J. B. Sargent, representing himself,
 the Hon. Joel A. Sperry snd certain other
 stockholders of the Derby railroad, conducted
 the opposition testimony. The first witness
 called by Mr. Sargent was Freight Agent
 Nathan M. Wilcox of the Consolidated road,
 who at the last hearing had not finished his
 testimony regarding the matter of competi-
 tion. "1t has been stated before this com mittee," said MT. Wilcox, ''that there has
 been no competition to New Haven. This city being located on tidewater there is, on the contrary, much competition. There are two steamboat lines in constant operation be- tween New York and New Haven running daily between these points. Then we have the many vessels bringing coal, lumber, pig iron, etc. All this is competitive freight.
 First take lumber. Seventy five per cent. of the lumber into New Haven comes Ey vessels.
 The shippers from northern Vermont tell us that the rates are so low by vessel that we cannot compete with them. Nearly all the
 hard pine lumber comes by water to New
 Haven. We cannot afford to handle it for the price that is given the shippers by water. Pig iron comes into this city princi- pally by water. Seventy-five per cent. of coal comes by water. When coal frsights here by vessels are as low as 50, 45 and even obliged to drop out. We have very little to do with the making of line freight. The Consolidated road does not, as stated before you, discriminate against this city. These line freights are made by the western lines, who fix an eastern rate in New York. Bos- ton governs New England. Whatever gov erns Boston in freight rates also governs all the towns in this State. We have nothing whatever to do with the making of these rates. Competition is made by two rival agents in Chicago. There has been no com petition on our road to make these rates. It is competition thousand miles away and we have nothing to do with it. As we look at it ninety five per cent. of the entire freight that comes into this city is competitive. When the rates get so low that we cannot handle it why we drop out and say that we have had enough. But we have made a practice of staying in, although there is no profit in it."
 Attorney Alling-Why is it that Bridge port can get lower freight rates than New Haven?
 MT. Wilcox-Because the Housatonic road can afford to do it. They get twice as much as we do on the same kind of freight that we do and also deliver it in Bridgeport less than what we can do it for.
 In speaking of the New York Central freights MT. Wilcox said: ''It was the inten- ton after the New York Central and West Shore road that the rates from that point should be more equal"
 Attorney Alling-What is the reason New Haven has not been on an equal footing with other towns in the State?
 MT, Wilcox-The reason is that the Consoli- dated road in a measure has not been willing to sacrifice itself for the benefit of the New Haven merchants.
 Attorney Alling-What have you done to have the rates lowered!
 MT. Wilcox-We have made every propo sition to the Boston and Albany, and the New York Central people.
 Attorney Alling-Do you think the North ampton road is still a competitive road?
 MT. Wilcox-I most certainly do. They make their rates now tie same as they did before the consolidation.
 Attorney Alling-How do you account for New London getting freight less from cen tral New York than New Haven?
 MT. Wilcox-Beeause it comes by another line the National Dispatch, by way of Oswe- | go.
 In answer to a question put by Attorney l filling MT. Wilcox said: ''The public can't | expect corporation individual to do l business less than cost. " "That remains to be | seen," replied MT. Alling.
 Attorney filling said a merchant requested him to ask few questions. "What portion ! of the rate do you get from Springfield on Chicago shipments? and what portion do you l get on the same knids of freights from New York Central?' MT. Wilcox declined to an- swer both.
 MT. AlIing-Is it not fact that your rates l from New York to Boston, all rail, are cheap l sr than from New York to New Haven? MT. l don't say we do and don't say | that we do not. I could not say positively | without looking it up.
 Alderman Barnes is it that it costs more on poultry, for instance, from point | ,ne hundred and fifty miles south of Chicago | over another line to that city, and from there | % New York city is less than from New | York city to New Haven; It cost me $3 for l three barrels of poultry to New York, and | s3 from New York to thus city. Why is 1 this?
 MT. Wilcox-I cannot say without looking l he matter up. If it is mistake, it will be l recti6ed.
 Alderman Barnes-I have q large number l of bills that want rectifying then.
 After considerable further testimony bear | ng on the freight question of minor impor- l ssnce, Treasurer Charles Atwater, of the | Derby railroad, was called by MT. Sargent, who stated that the statement that MT. At | water had been requested to make out at the l ast hearing was in his hands and he at once | prepared to read it. It was brought in, | said MT. Sargent, to show how favorable were | the prospects of the "Little Derby" at the l present time and the prospects for good | showing in the future. The statement was cost of the roadbed, :" said MT. Sargent, "as ac- ,epted from the contractor was $610, ,395. 15 including rails,. For land drainage paid after wards and put into construction account 5197, ,631 .63; ballasting, etc., $162. 7s9,9 making the amount of the constructing ac- ,ount ss7o, ,s1677. There is cash on hand Ire $1,296, ,356.52, all in good angible property. The bonded of the road is $350, 900 in first mortgage and $225, 900 in second mortgage ponds, which being deducted leaves $771,- $50. g, the actual net assets ot the road that Ire good less the accounts payable"
 MT. Alling-Mr. Atwater, is it not true hat the passenger rates of the Derby are greater than any other road in the Statei
 Mir. Atwater-I believe they are.
 MT. Alling-If rates of fare and freight | were to correspond with other roads, rates | could you pay dividsndsa
 MT. Atwater-We have reduced our pass snger rates and we should not depend upon our passenger rates to pay dividends.
 Eli s. Quintard, superintendent of the Derby railroad. was next called by MT. Sar gent. In answer to questions by that gen. leman MT. Quintard stated that the road was in excellent condition throughout, and o bear out his statement he produced let CT from the railroad commissioners which | tated that with one exception, referring to he trestle work at Birmingham, the road was n splendid condition.
 Mir N w. Merwin, the State street grain | md feed dealer, was next sworn, and said | n answer to Mir. Sargent whether, n his opinion, the city should f Iccept the proposition before them, replied | he did 0OI think if A fair equivalent for |